TMG and KKR partner on second Oakland-based transaction in 2018

SAN FRANCISCO/OAKLAND, Calif. & NEW YORK–(BUSINESS WIRE)–Dec. 3, 2018– TMG Partners, one of the Bay Area’s largest mixed-use property developers, and KKR, a leading global investment firm, announced today the purchase of 1221 City Center in Downtown Oakland, California. The purchase is the second transaction by TMG and KKR in Oakland this year, following the purchase of 1330 Broadway in Oakland in July.

This press release features multimedia. View the full release here:https://www.businesswire.com/news/home/20181203005485/en/

1221 City Center (Photo courtesy of TMG Partners)

The project is a 24-story, 522,000-square-foot office building and is located at the intersection of Broadway and 12^th Street. The building is one of three in the Bay Area that enjoys access to BART via a direct entrance to the 12^thStreet Station through the building lobby.

“We expect that the Oakland office market will continue its positive trajectory because of strong tenant demand and extremely limited supply,” said TMG’s Director of Development David Cropper. “We look forward to broadening our partnership with KKR in the future.”

“We are excited to partner with TMG for our second Oakland-based transaction this year, which will be KKR’s third investment in Oakland since 2017. We believe Oakland has attractive long-term secular growth trends driven by its accessibility to transit, a growing retail amenity base, and a meaningful amount of residential development,” said Justin Pattner, Head of Real Estate Equity in the Americas at KKR. “1221 City Center is an iconic property in the Oaklandskyline, and we look forward to the next phase of its business plan.”

KKR is making the investment through its Real Estate Partners Americas II Fund.

1221 City Center is 99% leased. Existing tenants include Clorox, Union Bank, Stanford Health Care, Wells Fargo Bank and Parsons Brinkerhoff.

The building has previously achieved a LEED Platinum rating by the US Green Building Council and features panoramic Oakland skyline and Bay views, onsite retail amenities and ample parking, as well as bike lockers and showers.

TMG, which recently celebrated its 33 1/3 anniversary, has been increasingly active in the Oakland office market. The purchase of 1221 City Center represents TMG’s fourth transaction in Oakland. 1330 Broadway was TMG’s first Oaklandredevelopment. Last year, the firm also acquired 2201 Broadway, an eight-story 198,000-square-foot office building in Uptown Oakland. Currently, the firm is also entitling an approximately 750,000-square-foot office and retail tower at the intersection of Grand Avenue and Telegraph Avenue.

About TMG Partners

TMG Partners, founded in 1984 and headquartered in San Francisco, is a full-service real estate development and management company. TMG has developed more than 25 million square feet of property throughout the San Francisco Bay Area, including San Francisco, San Jose, Oakland, Palo Alto, San Bruno, Emeryville, and Marin City. One of the most active developers in this area, the company has developed a variety of office, retail, residential and industrial properties, ranging from office campus and multi-story properties in urban, infill locations to mixed-use retail and single-story suburban buildings. For detailed information, visit www.tmgpartners.com.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181203005485/en/

Source: KKR

MEDIA:
TMG Partners: Julie Chase
jchase@jchasepr.com
415.710.7108

KKR: Kristi Huller or Samantha Norquist
Phone: 212-750-8300
media@kkr.com

LONDON – November 30, 2018 – H.I.G. Capital, LLC (“H.I.G.”), a leading global private equity investment firm with over €26 billion of equity capital under management, announced today that one of its affiliates has recently completed an investment in BollAnts Spa im Park, a 105-room wellness hotel & resort in Bad Sobernheim, Germany. BollAnts Spa im Park is one of the leading wellness resorts in Germany and has earned many awards including, most recently, the prestigious Tatler award for one of the best spas in the world (2018). Terms were not disclosed.

H.I.G. Realty continues to add to its sizeable holdings of real estate assets across Europe, consisting of both equity as well as debt investments, with a particular focus on its target market of value-added small/midcap opportunities.

Riccardo Dallolio, Managing Director and Head of H.I.G. Europe Realty Partners in London, commented: “The German real estate market represents a key part of our European value-add strategy and we continue to actively look at opportunities in the small/midcap sector across the capital structure”.

Sanjoy Chattopadhyay, Managing Director at H.I.G. Europe Realty Partners in London, added: “The transaction demonstrates our ability to leverage our strong network and track record to acquire high-quality assets with significant value-add potential. The fundamentals of the German wellness industry are attractive, and we look forward to pursuing further similar investments”.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over €26 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of €28 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.

• Represents an important step in Apleona’s continued transformation into a leading European real estate management services provider
• GVA will be combined with Avison Young’s existing UK operations and will continue its growth strategy under Avison Young’s ownership

Apleona Limited (“Apleona”), an EQT VII portfolio company, today announced that it has entered into a definitive agreement with Avison Young (Canada) Inc. (“Avison Young”), a Canada-based commercial real estate firm, under which Avison Young will acquire Apleona’s subsidiary, GVA.

GVA was acquired by EQT as part of Apleona in September 2016. UK-based GVA is a multi-disciplinary business offering clients advisory services that span the entire property life cycle from strategy and planning through to delivery. The firm has 1,500 employees in 15 offices in the UK, Ireland and Poland.

Mark Rose, Chair and CEO of Avison Young, comments: “We couldn’t be more excited to welcome GVA to Avison Young. This is a transformational event that underpins our ambition and intent to significantly expand our footprint in Europe and beyond. Avison Young and GVA have complementary businesses in the UK, and this combination of expertise and talent will better equip us to serve global clients.”

Gerry Hughes, CEO of GVA, comments: “To say I am delighted by this deal is an understatement. We could not have asked for a better outcome for the GVA business, our clients and our staff. We now enter a new era as a key component of a global real estate advisory platform which will allow us to further flourish and better serve global clients. I look forward to joining the Avison Young partnership and working with Mark, and I want to thank EQT for the support and opportunities it has given to GVA over the last few years.”

Andreas Aschenbrenner, Partner at EQT Partners, Investment Advisor to EQT, adds: “We are thrilled to have found the perfect long-term home for GVA in Avison Young, which is committed to continuing the growth strategy that GVA embarked on under EQT ownership. I am confident that GVA and Avison Young together will flourish, and I am excited to see GVA and Avison Young grow further to become one of the leading real estate advisors worldwide. The sale also marks another important step in transforming Apleona into the leading European provider of real estate management services.”

The transaction is expected to close during the first quarter of 2019, subject to the satisfaction of customary approvals from governmental and regulatory bodies.

EQT was advised by BofA Merrill Lynch (M&A) and Milbank, Tweed, Hadley & McCloy LLP (Legal).

Contacts

Dr. Andreas Aschenbrenner, Partner at EQT Partners, Investment Advisor to EQT, +49 89 2554 9943

EQT Press Contact, +46 8 506 55 334

About EQT

EQT is a leading investment firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtpartners.com

About GVA

GVA is a leading real estate advisory business with 15 offices and 1,500 staff in the UK, Ireland and Poland. With its in-depth understanding of the market, supported by a leading research capability, GVA advises private businesses and the public sector on the whole real estate lifecycle. GVA is an independent group under the ownership of EQT Partners.

More info: www.gva.co.uk.

About Avison Young

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,700 real estate professionals in  85 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial, multi-family and hospitality properties.

More info: www.avisonyoung.com

About Apleona

Apleona is a leading European real-estate services provider based in Neu-Isenburg near Frankfurt. Approximately 20,000 employees in more than 30 countries operate, manage, expand and equip real estate in all asset classes, operate and maintain plant and assist customers in a whole host of industries with production and secondary processes. The Group’s range of services extends from integrated facility management, building technology and interior fittings to real-estate management with all commercial services, letting, leasing and marketing of real estate. All services are provided on a modular basis or in an integrated package. In a regional or supra-regional account structure according to customer requirements, country-specific and service-specific operating companies ensure optimum performance and a uniformly high standard of quality across national borders. Apleona’s customers include leading industrial companies, investment funds, insurance companies, banks, the public sector, developers, owners and users.

More info: www.apleona.com

London, 17 October 2018 – Leading developer Regal London, and joint venture partner KKR, a leading global investment firm, have acquired a strategic new site at 340a Clapham Road, SW9, situated between Stockwell and Clapham North. The site represents Regal London’s and KKR’s first development through their joint venture. Upon completion, the total GDV of the scheme is expected to be in the region of £50million.

The brownfield site (formerly a tool hire depot), will become a vibrant mixed use, residential-led development, set to total 94,740 sq ft (GIA). It will deliver 62 one, two and three bedroom apartments – 12 of which will be available for Shared Ownership – spread over nine floors. The ground and lower ground floors will comprise approximately 18,250 ft² (GIA) of flexible B1/A1 commercial space. Planning permission was granted in June 2017 following a collaborative working relationship with the London Borough of Lambeth.

With a high quality and contemporary design, both of which are hallmarks of every Regal London scheme, the development will complement the surrounding streetscape of new build and period properties. Every apartment will benefit from a private balcony, while residents will also have access to communal gardens and a roof terrace.

An established network of transport links is within easy reach of the development, with Stockwell Underground Station just 0.2miles away, as well as Clapham North Underground Station and Clapham High Street Overground Station both within a short walk.

A thriving social and leisure scene is also nearby, led by the bars, pubs, restaurants and cafes, as well as a selection of amenities, in situ along the lively Clapham High Street and its surrounds.

Simon De Friend, CEO, Regal London, comments:

“Ensuring that our sites are attached to wider areas of investment and regeneration is fundamental to our development strategy. 340a Clapham Road has the necessary infrastructure to support a thriving community. With the character and amenities of both Clapham High Street and Stockwell just a stone’s throw away, it is set to be a sought-after proposition for first time buyers and young professionals alike.”

Guillaume Cassou, Member and Head of European Real Estate at KKR, adds:

“We are excited about our first transaction with Regal London, which comes at a time when London continues to require attractive and affordable housing, and builds on our strong track record of working with leading developers in markets around Europe.”

Christopher Shaw, CEO, Shaw Corporation Limited, comments:

“Shaw Corporation Limited acting for the landowner, David Pearl’s Totsbridge Limited, secured planning permission for the redevelopment of this strategic site in June 2017 having worked collaboratively with the London Borough of Lambeth to achieve agreement on the mixed use proposals.  We are delighted that Regal London and its joint venture partner, KKR, will take this development forward and deliver our collective vision that completes the regeneration of this part of Clapham Road, providing new high quality homes, including much needed affordable homes, and flexible workspace.”

Work is set to begin on site at 340a Clapham Road in H1 2019. Completions are expected to be from late 2021.

KKR’s investment is being made through its Real Estate Partners Europe fund.

Media contacts

For Regal London:
Tahlie Cooper
Edelman
Email: tahlie.cooper@edelman.com
Tel: 020 3047 4158

For KKR:
Alastair Elwen
Finsbury
Email: Alastair.elwen@finsbury.com
Tel: 0207 251 3801

About Regal London
Regal London is a privately held property development firm which has been delivering outstanding mixed used developments in the London market since 1998. The company has over 475,000 sq ft of high quality commercial space completed and underway, as well as 3,250 residential units, ranging from eight-bedroom luxury houses to chic city apartments, all of which have Regal London’s hallmark of quality, with superior specifications and customer service.

About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

SEOUL, South Korea–(BUSINESS WIRE)–Oct. 9, 2018– KKR, a leading global investment firm, together with IGIS Asset Management (“IGIS”), the largest real estate fund manager in Korea, announced today that they have made an investment along with the National Pension Service of Korea (“NPS”) to acquire a mixed-use real estate project (the “Asset”) under development in the Gangnam Business District (“GBD”) in Seoul, South Korea. The project, to be purchased from a consortium led by local engineering firm Daor E&C, is expected to cost approximately KRW 2.1 trillion(US$ 1.9 billion) in total, inclusive of purchase price and further costs to complete. Additional terms of the transaction were not disclosed.

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The Asset is located in the heart of the GBD at the intersection of Teheran-ro and Eonju-ro on the former Renaissance Hotel site. Currently under construction, the property will primarily consist of prime grade office space, amenity retail space and a five-star hotel, with a gross floor area of 239,188 square meters and net leasable area of 121,707 square meters. A 20-year master lease agreement for the 263-room hotel has been signed with Shinsegae Chosun, an experienced and best-in-class hotel operator.

“We are thrilled to be investing in what we believe will be an iconic property in an excellent location, and to be teaming up with outstanding partners including IGIS and NPS to do so. We look forward to continue building on our global real estate platform by making quality real estate investments in South Korea and throughout Asia Pacific more broadly,” said John Pattar, Member & Head of Real Estate Asia at KKR.

“We are excited to make this investment along with world-class investment firms KKR and NPS. We expect to develop the property not just as the best real estate asset in South Korea, but also as a landmark building in the global real estate market,” said Sock-woo Jung, President of Domestic Investment at IGIS.

KKR’s investment is being funded from KKR Asian Fund III. The investment is KKR’s third real estate investment in South Korea. Previously KKR invested in The-K Twin Towers, a prime office complex located in Seoul’s Central Business District, in June 2014. The-K Twin Towers was sold to Samsung SRA in January 2018 at a record price.

Since 2011, KKR has committed approximately US$ 2 billion in equity and debt across nearly 50 real estate transactions in Asia Pacific markets including South Korea, Australia, China, India, New Zealand and Singapore. The firm has a dedicated team of approximately 20 real estate professionals based in Asia Pacific spanning both the equity and credit strategies.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About IGIS

IGIS, the largest integrated real estate investment and asset management firm in Korea, currently manages real estate assets valued at more than KRW 22.6 trillion (US$ 20 billion; gross asset value). In August 2018, the Institutional Real Estate, Inc. (IREI) named IGIS as the fourth largest real estate manager in Asia in terms of assets under management.

Source: KKR

Media
For KKR Asia:
Cara Major, +852-3602-7335
Cara.Major@KKR.com
or
For KKR South Korea:
Gaeun Choi, +82-2-6951-3546 / +82-10-9186-1324
KKR@thesignature.co.kr